• KDI Journal of Economic Policy
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• v.33 no.1
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• pp.73-91
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• 2011

This paper demonstrates empirically that individuals who monitor indicators of their current cardiovascular health status by undergoing medical examinations are more likely to invest in their own health than those who do not observe such monitoring protocols. Using data from the 2001 National Health and Nutrition Examination Survey of Korea in a structural econometric model, this paper attempts to control the endogeneity problem inherent to the individual decision as to whether to undergo medical examinations, and provides estimation results showing that increased individual health awareness via medical examinations exerts a statistically significant positive effect on health investments. From the policy perspective, the estimation results of this paper may provide a rationale supporting the health policy of free provision of health examination services to the insured via National Health Insurance.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.21 no.11
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• pp.264-272
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• 2020

In this study, for the people who turned or returned to farming (the "Returnees"), information provision measures were sought, focusing on "farmland," for their difficulties in the settlement phase and finding a way for their new agricultural companies to settle in the farming business stably. For this purpose, this study considered endogeneity using a bivariate probit model. According to the results of the study, first, there is a strong positive correlation between the difficulty of securing farmland and the demand for providing farmland information in the settlement phase. Therefore, to ensure the stable settlement of the Returnees, it is necessary to actively respond to their demand through the provision of farmland information. Second, for young returnees, the probability of encountering difficulties in securing farmland is high during the settlement phase. Third, if the young returnees returned to farming after seeing the possibility of agricultural development, the possibility of securing farmland in the settlement stage decreases, and although there was no statistical significance, the demand for farmland information also decreases. Fourth, it was found that if the returnees intend to expand the scale of farming in the future, it is difficult to secure farmland in the settlement phase, and the demand for farmland information also increases.

• The Korean Journal of Health Service Management
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• v.5 no.4
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• pp.177-192
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• 2011

The arguments exist that private health insurance(PHI) policy holders tend to use the health care services more than non-policy holders due to their little out-of-pocket spending, resulting in the adverse effects on the finances of National Health Insurance. This study aims to increase the objective understanding of the issue and to draw a direction of further research, by reviewing the articles, reports and statistics which examined the effects of purchasing PHI policies on health care utilization. Significant differences in healthcare utilization, except for the very partial increase of utilization in outpatient settings, have been not found. The similar trends of the results have existed in a few previous studies which tried to control the endogeneity of medical use and health insurance with latent variables which affect the decision on medical use and health insurance. However, we can not exclude the potential change of healthcare utilization patterns because the portion of the insured of indemnity PHI is becoming rapidly larger in the market. For further research, we should try to obtain the objective information of subjects' past medical history, health status, health related behavior, and income affecting purchase of PHI and utilization of healthcare services. And the efforts of controlling the endogeneity of medical use and health insurance with latent variables which affect the decision on medical use and health insurance, are very considerable.

• The Journal of the Korea Contents Association
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• v.12 no.12
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• pp.385-394
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• 2012

This study investigates whether earnings management behavior of chaebol firms differ from that of non-chaebol firms. The ownership structure of chaebol firms is characterized by the dominance of one largest shareholder and his family members who typically participate in the management of the firm directly or indirectly and influence most of the important management decision. This study adopts the random effect model and the hausman and talyor model, using a panel of 5092 firm-year over a period from 1991 to 2010 to control for potential heterogeneity and endogeneity that may cause sever bias. This study finds that there is no difference in accrual based earnings management level between chaebol firms and non-chaebol firms. However, chaebol firms appeared to engage less real earnings management that is known to negatively affect future earnings and share prices. The results are consistent when controlling for potential heterogeneity and endogeneity in the hausman and taylor model. The results may be of interest to various stakeholders, policy makers, standard setters and academic researchers.

• Environmental and Resource Economics Review
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• v.21 no.2
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• pp.271-299
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• 2012

The relationship between environment and economic growth has been controversial for a long time. The cores of controversy are endogeneity problem and omitted variable bias. This paper tests EKC (Environmental Kuznets Curves) hypothesis by considering econometric issues and estimates the effects of energy mix on $CO_2$ emissions empirically and tests with time series during 1981~2008. By the results of this analysis, we convince EKC Hypothesis which the relationship between $CO_2$ emissions and economic growth is the inverted U-shaped and the national energy mix contributes significantly to GHG mitigation. We also find that the nuclear energy has the greatest contribution for $CO_2$ mitigation and the renewable energy does not seem to contribute little to the $CO_2$ mitigation because the proportion of renewable energy in Korea is negligible. In terms of final energy consumption, $CO_2$ increases and transportation sector is statistically and significantly associated.

• Journal of Labour Economics
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• v.43 no.1
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• pp.1-34
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• 2020

As the economic environment rapidly changes, the ability to flexibly adapt has become a vital skill which is primarily attained through education and training. Subsequently, it is essential that the effects of vocational eduction and training are closely examined to see if they are fulfilling their goals; specifically, whether they bolster the chances of gaining employment. To that end, the endogenous aspects of training variables must be controlled. This study critically assesses the approaches of current literature in regards to tackling the endogeneity issue, and investigates the effects of vocational training through various econometric models. The results failed to reveal any positive effects of Korea's vocational training on employment. However, the negative effects were also not large enough to be significant. Additionally, the marginal effects were weaker for women and older age groups-which show a disparity between men and women-than for men and younger age groups, respectively. A more comprehensive and in-depth analysis will be needed of these results using recent data and detailed information about the training process.

• The Journal of the Korea Contents Association
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• v.18 no.1
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• pp.268-276
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• 2018

This study examined the effects of indemnity private health insurance on the medical utilization among the Korean adults. The used data were the 2014 survey data of Korea Health Panel, and the number of subjects was 11,436. Authors employed instrumental variable regression model where the instrument variables for controlling for endogeneity of indemnity were the purchasing of private pension and number of family members. The results showed that the number of outpatient visits and the number of hospitalizations for indemnity private health insurance subscribers were higher than non-subscribers. The number of household members and the private pension variables were proved to be appropriate as instrumental variables. This paper recommends the Korean government to monitor and evaluate the effects of indemnity private health insurance on the medical utilization in order to improve the efficiency of health care finance.

• Journal of the Economic Geographical Society of Korea
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• v.13 no.4
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• pp.697-709
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• 2010

The purpose of this paper is to analyze the effects of education and training on labor productivity of the leading firms in Busan during the period of 1999~2000. In order to control for firm heterogeneity and the endogeneity problem of education and training, we employed fixed effects model and 2SLS. Our empirical results showed that firms expenditures per capita on education and training were positively correlated with their labor productivity. We also tested whether the effects of education and training on labor productivity vary with firm size or across industries. It is shown that, while firm size makes no statistical differences, the effect of education and training on labor productivity is smaller in service industry than in manufacturing one. From heterogeneous effect of education and training across industries, we could infer that policies to support various education and training programs in service industry are needed to be reinforced to improve the competitiveness of service industry.

• Journal of Digital Convergence
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• v.15 no.4
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• pp.117-125
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• 2017

The purpose of this study is to investigate the actual effect of government R&D support and regulation as a policy on technology innovation of SMEs. Because the previous studies did not consider the endogeneity of R&D support and made inconsistent conclusions in the case of regulation, the empirical research was conducted by logistic, negative binomial regression and 2SLS analysis for 1,223 SMEs. The analysis results show that government support has the effect for technology innovation even considering the endogeneity of government R&D support, and government regulation has a positive effect on technology innovation which supports Porter's theory. These results imply that government R&D support is important in inducing technology innovation because of the vulnerability of SMEs technology development environment and government should foster SMEs technology innovation through appropriate regulation policies rather than unconditional deregulation.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.11-21
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• 2021

In the last few years, there is growing interest in the field of simultaneous equation estimation in finance due to the endogeneity problem caused by measurement errors, simultaneity, or omitted variables. This study aims to discuss the endogeneity problem in corporate financing decisions and investigate the interrelationship of financial decision-making such as investment decision, dividend decision, and external financing decision in Pakistan Stock Exchange (PSX) using two-stage least squares (2SLS) and generalized method of moment (GMM) estimation. The Bruech-Pagan test shows that the data has no heteroskedasticity issue and 2SLS is a better approach in the context of this study as compared to the GMM approach, and internal instruments are also sufficiently strong and valid. The three financial decision-making attributes are not jointly determined, and the dividend is influenced by one-sided investment. In the emerging stock market context, external financing and investment are not inter-related and did not affect each other. The question of whether the simultaneous equation estimation can be useful in the context of the emerging stock markets and newly-growing firms remains unanswered. The inclusive evidence shows that the theoretical link in the emerging stock market is difficult to prove like in developed stock markets.